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Fulu Holdings (HKSE:02101) Financial Strength : 7 (As of Dec. 2024)


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What is Fulu Holdings Financial Strength?

Fulu Holdings has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Fulu Holdings did not have earnings to cover the interest expense. Fulu Holdings's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.54. As of today, Fulu Holdings's Altman Z-Score is 2.29.


Competitive Comparison of Fulu Holdings's Financial Strength

For the Internet Retail subindustry, Fulu Holdings's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Fulu Holdings's Financial Strength Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Fulu Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Fulu Holdings's Financial Strength falls into.


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Fulu Holdings Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Fulu Holdings's Interest Expense for the months ended in Dec. 2024 was HK$-1.8 Mil. Its Operating Income for the months ended in Dec. 2024 was HK$-14.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was HK$2.1 Mil.

Fulu Holdings's Interest Coverage for the quarter that ended in Dec. 2024 is

Fulu Holdings did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Fulu Holdings's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(186.393 + 2.103) / 349.65
=0.54

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Fulu Holdings has a Z-score of 2.29, indicating it is in Grey Zones. This implies that Fulu Holdings is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.29 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Fulu Holdings  (HKSE:02101) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Fulu Holdings has the Financial Strength Rank of 7.


Fulu Holdings Financial Strength Related Terms

Thank you for viewing the detailed overview of Fulu Holdings's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Fulu Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 77, Guanggu Avenue, 2nd Floor, Building B2, Optics Valley Financial Port, East Lake High-tech Development Zone, Hubei Province, Wuhan, CHN
Fulu Holdings Ltd is a third-party virtual goods and services platform operator in China. Its platform connects virtual goods vendors and virtual goods sales channels. It serves virtual goods vendors, covering leisure and entertainment, games, telecommunications, and lifestyle services, providing virtual goods vendors with access to a variety of sales channels, such as e-commerce and online payment platforms. It generates revenues from providing business-to-business services to virtual goods vendors and sales channels, including facilitating virtual goods transactions between virtual goods vendors and virtual goods sales channels and providing value-added services. It generates revenue from four business segments: leisure and entertainment; games; telecommunications; and lifestyle.
Executives
Zhang Yuguo 2101 Beneficial owner
Fu Xi 2307 Founder of a discretionary trust who can infl
Luzhi Holdings Limited 2101 Beneficial owner
Xu Jian 2201 Interest of corporation controlled by you
Fuxi Limited 2201 Interest of corporation controlled by you
Zhangyuguo Holdings Limited 2101 Beneficial owner

Fulu Holdings Headlines

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